London Daily

Focus on the big picture.
Wednesday, Oct 01, 2025

Microsoft's ‘anti-competitive’ software resale practices lead to £270 million lawsuit, UK vendor claims

Microsoft's ‘anti-competitive’ software resale practices lead to £270 million lawsuit, UK vendor claims

Microsoft has been accused of violating EU and UK competition law by attempting to kill the market for the resale of perpetual licence products like its Office suite in a lawsuit filed by a vendor claiming £270 million in damages.

In its case in the High Court of Justice in London, British reseller ValueLicensing (VL) has said that the tech giant’s general licensing terms and conditions for its business-to-business software products infringe on the UK’s Competition Act (1998), the Treaty on the Functioning of the European Union (TFEU) and the European Economic Area agreement.

According to the particulars of VL’s claim, the company alleges that Microsoft is abusing its dominant position in the “desktop operating system” and “office productivity suite” markets to persuade customers to exchange licences in return for heavily discounted subscription-based models.

"Microsoft has effectively been paying those customers (via those discounts) to protect Microsoft from competition, by restricting the supply of pre-owned licences to Microsoft’s competitors like VL."


This conversion from licensee to subscriber has cut out intermediaries like VL, whose business model involves purchasing and reselling such secondhand licences from companies that have “either migrated to cloud services”, downsized or gone out of business.

Additionally, VL alleges that Microsoft “recently shortened the support period for its perpetually licensed products” as part of a “sustained – and ongoing – campaign to stifle the sale of pre-owned licences for Microsoft software in the UK and EEA.”

It cited as an example of such restrictive practices the recently announced five-year support period for Office 2021 as opposed to the seven-year period of total support offered to Office 2019 consumers. Historically, the company’s policy was to offer 10 years of support, with bug fixes, security updates and tech support.

It also noted the increasing complexity of Microsoft’s licensing terms and conditions, which “until February 2021 were regularly published as a single document; the last English version ran toover 75,000 words.” These conditions are now spread over a number of webpages on its site.

Although filed in April, details of VL’s lawsuit only came into the public domain after Microsoft Corporation in the US and its two co-defendant subsidiaries UK-based Microsoft Ltd. and Microsoft Ireland Operations Ltd. acknowledged receiving legal notice earlier this month.

“Once a licence is placed onto the market in Europe, it is protected from the vendor effectively, they have exhausted their rights once it is placed onto the market,” VL managing director Jon Horley told news portal The Register.

While Microsoft has not commented on the case, it has reportedly signalled its intent to contest the lawsuit. The software giant is preparing a jurisdictional challenge to contest the London High Court’s standing to hear the case. This is likely to be heard only early next year, according to the outlet.

Although VL estimates it is suffering damages to the tune of £87,000 daily (roughly $121,000) in addition to the overall loss of some £270 million (about $375 million) in revenue, Horley said there were “many different ways” for his company to “stay in the game.”

“I’ve stayed in the game for 17 to 18 years. However long this takes, I’ll stay in the game as far as this part is concerned,” he told the site.

If the contracts are struck down and voided, it would have far-reaching repercussions across Europe and the UK for Microsoft’s licensing and sales divisions.

A victory for VL, Horley stated, would effectively mean that “almost every single organisation, and then any organisation that has signed up to [Microsoft’s alleged anti-competitive] terms, is effectively party to an [allegedly] anti-competitive agreement. And that includes governments, for example, in the UK with a digital transformation arrangement,” as cited by The Register.

Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×